In Excel: calculate the break-even point in units as =FixedCosts/(PricePerUnit-VariableCostPerUnit); multiply by the price for break-even revenue.
On this page7
Put fixed costs, price per unit, and variable cost per unit in three cells.
Compute units: =B2/(B3-B4). Round UP with ROUNDUP(...,0) — you cannot sell half a unit.
Compute revenue: units × price.
Chart cost and revenue lines against quantity if you want the visual crossing point.
What this does
The break-even point is where revenue covers all costs. The denominator (price minus variable cost) is the contribution margin: what each sold unit contributes toward fixed costs. Divide fixed costs by it and you get the number of units at which profit is exactly zero — every unit beyond that is profit. The same idea underpins a lot of everyday Excel work, so the few minutes spent getting it right here pay back across every sheet you build afterwards. Treat it as a pattern, not a one-off, and it stops being something you look up and starts being something you reach for. The difference between a quick fix and a sheet you can trust is the extra minute you spend validating “breakeven formula excel”. Start on a copy or a tiny sample, keep the affected formula visible, and compare the result with the outcome you expected before you touch the real workbook. When a formula is involved, keep the inputs labelled beside it, reference cells instead of typing values, and apply number formatting only after the result checks out. The point is a calculation you can defend to a CFO or an auditor, but the practical win is that someone else can open the file and understand what happened without asking you.
A worked example
Fixed costs are €5,000 per month, the product sells for €25, and each unit costs €15 to make. =5000/(25-15) returns 500 units; break-even revenue is 500×€25 = €12,500. At 499 units the month is a loss; at 501 it is profitable. Break-even is the first sanity check for any product, side project, or pricing change: how many sales until this stops costing money? Check the referenced cells, argument order and result type in your workbook. Start with the worked example before changing an input, then compare the changed result with the calculation you expected. An error value or a result of a different type is a reason to inspect the inputs and arguments.
In Google Sheets
Google Sheets support for this task has not been verified. Check the function, arguments and workflow in the target product before transferring the example. Matching formula notation does not establish identical behaviour. The aim was to get you unstuck fast and leave you a little more capable than a copy-paste would. The answer is at the top and the detail above shows why it holds — so the next time a colleague asks, you can answer without reaching for search. For “breakeven formula excel”, keep the input cells and the result visible while you check the formula in Excel. Follow the worked example and change one input at a time. The steps explain the workbook calculation; this page does not run a live calculator for that task.
Common mistakes
- Mixing time frames — monthly fixed costs against an annual sales target.
- Forgetting per-unit costs like shipping or payment fees in the variable cost.
- A price below variable cost: the margin is negative and no volume ever breaks even.
- Treating semi-fixed costs (a second machine at 2× volume) as flat across all quantities.
Frequently asked questions
What is the break-even formula in Excel?
=FixedCosts/(Price-VariableCost) for units. There is no built-in BREAKEVEN function.
How do I make a break-even chart?
Build a quantity column, compute total cost (fixed + variable×qty) and revenue (price×qty), and plot both as lines — they cross at break-even.
Can I solve for the price instead?
Yes — use Goal Seek (Data ▸ What-If Analysis): set the profit cell to 0 by changing the price cell.